The Sei price is facing significant pressure as the highly anticipated $12 million token unlock event approaches on October 15, potentially impacting short-term market sentiment. This event could lead to increased selling pressure, but it also sets the stage for a potential recovery in the cryptocurrency’s value.
Market Sentiment and Token Unlock
Currently, Sei is trading at $0.2243, representing a 0.3% decline from the previous day. Over the last week, the token has experienced a 20% drop, and a 33% decrease over the past month, reflecting the growing caution among mid-cap altcoins. The 24-hour trading volume for Sei (SEI) has fallen to $177.86 million, a decline of 13.3% from the previous day, indicating less spot activity. CoinGlass derivatives data shows a 1% increase in open interest to $130.08 million, while volume decreased by 11.8% to $307.06 million. This combination suggests that traders are opening new positions cautiously, possibly hedging or shorting before the unlock event rather than entering new long positions.
Impact of Token Unlock on Sei Price
According to data from Tokenomist, approximately 55.56 million SEI, worth around $12.54 million, will be unlocked on October 15. This represents about 1.15% of the circulating supply. Although the percentage is relatively small, token unlock events often result in temporary price pressure, especially when market sentiment is fragile. Traders typically reduce risk or sell the asset in advance, leading to short-term sell-offs. As the new tokens are distributed to early investors or contributors, selling pressure could increase in the coming days before stabilizing.
Sei Ecosystem Developments
Despite the short-term headwinds, Sei’s ecosystem remains active and promising. The launch of Yei Finance’s governance token CLO on October 14 has provided a narrative boost, with Yei Finance currently holding 47% of the network’s total value. The upcoming Q4 upgrades, featuring isolated risk pools and improved oracle feeds, could further solidify Sei’s decentralized financial strength, increasing protocol demand and network activity. Additionally, Sei’s Giga upgrade, expected later this year, continues to attract developer attention with its potential to achieve speeds of up to 200,000 transactions per second and sub-400ms finality, which could be a game-changer for trading, gaming, and RWA applications.
Technical Analysis of Sei Price
The technical analysis paints a cautious picture. With the 50-day SMA near $0.2904 and the 10-day EMA at $0.2429 serving as overhead resistance, the token is currently trading below all major moving averages. The relative strength index is close to 35, suggesting that the asset is approaching an oversold condition but is not yet in reversal territory, while the momentum and MACD indicators are still in selling territory. Bollinger Bands indicate decreasing volatility, suggesting a potential decisive move following the token unlock, which could bring a relief bounce or further decline. Key support lies at $0.20, a level that has been tested several times over the past week, while resistance is forming around $0.27.
There could be a bounce back towards $0.26-0.28 if Sei can handle the unlock without severe declines. If not, the price could retest the $0.19 level before gaining stability due to ongoing weakness. For the most accurate and up-to-date information, please refer to https://crypto.news/sei-price-downside-risk-12m-sei-token-unlock-2025/
